XRP Bulls on Edge—Could the Downtrend Continue?

XRP price started a fresh decline below the $2.650 resistance. The price is now consolidating losses and might face resistance near the $2.550 zone.

• XRP price started a fresh decline below the $2.650 zone.
• The price is now trading above $2.40 and the 100-hourly Simple Moving Average.
• There is a short-term rising channel forming with support at $2.40 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair might continue to move down if it remains below the $2.550 resistance zone.

XRP Price Faces Resistance

XRP price started a fresh decline from the $3.00 resistance, like Bitcoin and Ethereum . The price dipped below the $2.80 and $2.60 levels.

The bears were able to push the price below the 50% Fib retracement level of the upward move from the $1.95 swing low to the $3.00 high. Finally, the bulls appeared near the $2.20 support zone. A base is forming and the price is now attempting to recover above $2.30.

The price is now trading above $2.40 and the 100-hourly Simple Moving Average. There is also a short-term rising channel forming with support at $2.40 on the hourly chart of the XRP/USD pair.

On the upside, the price might face resistance near the $2.550 level. The first major resistance is near the $2.650 level. The next resistance is $2.750. A clear move above the $2.750 resistance might send the price toward the $2.80 resistance.

Any more gains might send the price toward the $2.880 resistance or even $2.920 in the near term. The next major hurdle for the bulls might be $3.00.

Another Decline?

If XRP fails to clear the $2.550 resistance zone, it could start another decline. Initial support on the downside is near the $2.40 level. The next major support is near the $2.320 level.

If there is a downside break and a close below the $2.320 level, the price might continue to decline toward the $2.20 support and the 76.4% Fib retracement level of the upward move from the $1.95 swing low to the $3.00 high. The next major support sits near the $2.120 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.

Major Support Levels – $2.40 and $2.320.

Major Resistance Levels – $2.550 and $2.750.